India and Oman signed a (CEPA) agreement

 

India-Oman Ties History

• Diplomatic relations were formalised in 1955 and elevated to a Strategic Partnership in 2008.
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• Trade Relations: 
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• Oman is India’s 28th largest trading partner in FY 2023-2024, with total bilateral trade rising from US$ 6.70 billion in 2017-18 to US$ 10.61 billion in 2024-25.
  • India ranked as Oman’s fourth largest source of non-oil imports and third largest destination for non-oil exports, underlining the diversification of economic ties beyond hydrocarbons.
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• Investment flows have been similarly robust, with more than 6,000 India–Oman joint ventures operating in Oman. 
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• These ventures account for an estimated 7.5 billion US dollars in capital over time. 
• Oman’s cumulative FDI equity inflows into India between 2000 – 2025 amounted to 605.57 million US dollars.

• Defence Cooperation: 
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• India and Oman conduct regular biennial bilateral exercises between all three services.
  • Army exercise: Al Najah
  • Air Force exercise: Eastern Bridge
  • Naval Exercise: Naseem Al Bahr
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• Maritime Cooperation:
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•  Oman is at the gateway of Strait of Hormuz through which India imports one-fifth of its oil imports.
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•  Port of Duqm  -
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• India signed a pact with the country in 2018 to access the Duqm port of Oman.
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• The Port of Duqm is situated on the southeastern seaboard of Oman, overlooking the Arabian Sea and the Indian Ocean. It is strategically located, in close proximity to the Chabahar port in Iran.

WHY IN NEWS ? 

duty-free access to 98.08% FOR INDIA 

India and Oman signed a Comprehensive Economic Partnership Agreement (CEPA) on Thursday, 

under which Oman will provide India duty-free access to 98.08% of its tariff lines, covering 99.38% of India’s exports to Oman.

India, on the other hand, has offered 

liberalised tariffs on 77.79% of its total tariff lines, covering 94.81% of what India imports from Oman. 

mobility of workers 

Apart from tariff removal on merchandise exports, the deal also includes several concessions that are expected to benefit India’s service sector, including in terms of mobility of workers.

The deal was signed in Muscat by 

Commerce and Industry Minister Piyush Goyal and Oman’s Minister of Commerce, Industry and Investment Promotion Qais bin Mohammed Al Yousef in the presence of Prime Minister Narendra Modi and Sultan Haitham bin Tarik.

‘Renewed faith’

TRADE IN 2024

 

India exported 

merchandise worth $4.06 billion to Oman in 2024-25, which made up 0.93% of India’s total exports that financial year.

 It imported 

goods worth $6.5 billion from Oman, comprising 0.91% of India’s total imports.

This is the first bilateral agreement 

that Oman has signed with any country since it signed a deal with the U.S. in 2006. 

It is also the second deal 

India has signed with a country in the Gulf Cooperation Council (GCC), the first being with the United Arab Emirates in February 2022.

gateway for India  

Mr. Goyal had also pointed out that a trade deal with Oman also served as a gateway for India to the GCC region, eastern Europe, central Asia, and Africa.

Mr. Modi added that the CEPA would create new opportunities for 

• growth, 
• employment and 
• innovation for the youth of both countries.

full tariff elimination

labour-intensive sectors such as 

• gems and jewellery, 
• textiles, 
• leather, 
• footwear, 
• sports goods, 
• plastics, 
• furniture, 
• agricultural products, 
• engineering products, pharmaceuticals, medical devices, and automobiles will receive full tariff elimination.

 india set out of the deal

India has kept sensitive products such as 

• agricultural goods, 
• including dairy, 
• tea, 
• coffee, 
• rubber, and tobacco products, 
• gold and silver bullion, jewellery, 
• and other labour-intensive products - such as footwear, sports goods, and the scrap of many base metals out of the deal.

Mobility of workers

According to the release, a major highlight of the CEPA is the enhanced mobility framework for Indian professionals.

For the first time

Oman has offered wide-ranging commitments under Mode 4, including a notable increase in the quota for Intra-Corporate Transferees from 20% to 50%,

Enhanced Mobility (पेशेवरों के लिए आसान आवाजाही)

इसका मतलब है कि अब भारतीय इंजीनियर, डॉक्टर, अकाउंटेंट और अन्य पेशेवर पहले के मुकाबले ज्यादा आसानी से ओमान जाकर काम कर सकेंगे। ओमान ने पहली बार इस तरह की बड़ी रियायतें दी हैं।

2. Mode 4 (मोड 4 क्या है?)

अंतरराष्ट्रीय व्यापार में 'Mode 4' का अर्थ होता है "सेवा प्रदान करने के लिए व्यक्तियों की आवाजाही" (Movement of Natural Persons)। सरल शब्दों में, जब कोई व्यक्ति सेवा देने के लिए एक देश से दूसरे देश जाता है। ओमान ने इसके तहत भारतीय प्रोफेशनल्स को विशेष सुविधाएं देने का वादा किया है।

3. Intra-Corporate Transferees (ICT) - कोटा 20% से 50%

• मतलब: मान लीजिए एक भारतीय कंपनी (जैसे Tata या Infosys) की ओमान में शाखा है। पहले वह कंपनी अपनी ओमान ब्रांच में केवल 20% भारतीय कर्मचारियों को ही भारत से बुलाकर रख सकती थी (बाकी उन्हें स्थानीय या अन्य देशों से लेने होते थे)।

• बदलाव: अब इस कोटे को बढ़ाकर 50% कर दिया गया है। यानी अब भारतीय कंपनियां अपने ओमान ऑफिस में आधे कर्मचारी सीधे भारत से भेज सकती हैं।

longer permitted duration of stay 

for Contractual Service Suppliers — extended from the existing 90 days to two years, with the possibility of a further two-year extension,” it said.

The agreement also provides for more 

• liberal entry and stay conditions for skilled professionals in key sectors, the release added.